FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

The Washington Post's leaked transcript of a January phone call between President Donald Trump and Prime Minister Malcolm Turnbull highlights the failure of Australia's deal with the US to take refugees from offshore processing centres on Nauru and Manus Island.

Please share this article - Go to very top of page, right hand side, for social media buttons.

It also reveals Turnbull's desperation not to let people who came by boat settle in Australia.

The refugee deal was made in the dying days of the Obama administration. Trump, upon assuming office, tweeted his dismay over it:

Here are a few of the key issues revealed in the leaked transcript.

Turnbull: 'You can decide to take them or to not take them after vetting. You can decide to take 1,000 or 100. It is entirely up to you.'

Turnbull's comments highlight a key fault with the US deal.

Throughout the call, Turnbull reiterates that the only obligation on the US under this deal is to consider taking refugees. Trump asks:

Suppose I vet them closely and I do not take any?

Turnbull responds:

That is the point I have been trying to make.

The transcript highlights concerns that the deal could end up with the US deciding not to take any refugees from Manus Island and Nauru. A key question for the Turnbull government is what its plan is for the rest of the people left to languish indefinitely.

The harms of offshore processing are well known. Accommodation standards, facilities and services in the detention centres remain well below international standards. There have been consistent and alarming reports of abuse (sexual and otherwise). There has been one murder and six other deaths from inadequate medical care in offshore detention centres.

Turnbull: 'We will then hold up our end of the bargain'

During the conversation, Turnbull highlighted that in exchange for the US taking people from Manus Island and Nauru:

We will then hold up our end of the bargain by taking in our country 31 [inaudible] that you need to move on from.

This is a reference to the commitment the Turnbull government made in 2016 to resettle in Australia an unspecified number of Central American refugees currently residing in a camp in Costa Rica. This aspect of the deal still remains unclear, with the transcript "inaudible" during this key moment.

Although the Turnbull government strenuously denied the deal was a "people swap", it has been cast as a quid-pro-quo arrangement, whereby the Australian government can publicly maintain its unwavering commitment to an offshore detention policy that is no longer sustainable.

Turnbull: 'The people - none of these people are from the conflict zone. They are basically economic refugees from Iran, Pakistan and Afghanistan.'

This statement highlights either wilful ignorance or blatant deceitfulness by Turnbull in an attempt to sell our responsibility to the US.

The Department of Immigration and Border Protection's statistics show that of the 2,235 people on Manus Island and Nauru who have been assessed, almost 80% have been found to be persecuted refugees.

The term "economic refugee" is also a misnomer. Those found to be refugees are people fleeing persecution, based on who they are or what they believe.

By telling Trump these people are "basically economic refugees", Turnbull also misrepresents the ongoing persecution and conflict that people from these countries are experiencing daily.

Trump: 'What is the thing with boats? Why do you discriminate against boats?'

Trump raises a good point about Australia's "discrimination against boats".

The UN Special Rapporteur on the Human Rights of Migrants has highlighted Australia inhumane and discriminatory policies directed at boat arrivals. This includes mandatory and prolonged detention, as well as indefinite separation from families, restrictions on social services, and no access to citizenship.

Trump: 'I hate taking these people. I guarantee you they are bad. That is why they are in prison right now.'

Trump's insistence that the people detained by Australia on Manus Island and Nauru "are bad" - which Turnbull did not contest - demonstrates the disdain and lack of understanding common to both the Australian and US governments with respect to forced displacement.

The notion of immigration detention being akin to "prison" underscores the punitive nature of the Turnbull government's approach to people desperately seeking asylum - a description Turnbull fails to rebut.

Trump's repeated attempts to draw a link between genuine refugees and terrorism are deeply troubling. ASIO Director-General Duncan Lewis has said no such link exists. In Australia and the US, both the media and the government have used this misleading narrative to justify the persecution of refugees and asylum seekers.

What next?

Ultimately, the transcript reveals that Australia maintains control and power over the centres - essentially highlighting that Manus Island and Nauru are Australia's responsibility.

As Turnbull said:

They have been under our supervision for over three years now and we know exactly everything about them.

As Australia maintains responsibility for these people, we must ensure their safety and dignity. As the transcripts reveal, the US deal may amount to nothing.

A decade ago, the Howard government faced the same question of what to do with hundreds of refugees on Nauru and Manus Island who had nowhere else to go. John Howard eventually realised the only option was to bring them to Australia. Turnbull must do the same - and quickly.

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet